National Housing Law Project Housing Law Bulletin

The following are housing-related regulations and Notices that HUD and the Department of Agriculture has recently issued. For the most part, the summaries are taken directly from HUD's and USDA's summary of the regulation in the Federal Register. The Notice summaries are taken from each Notice's introductory paragraphs.

Copies of the cited HUD documents may be secured from various sources, including (1) the Handsnet folder at Legal Services/Substantive Law/Housing Forum, (2) the Government Printing Office's spot on the World Wide Web,¹ (3) bound volumes of the Federal Register, (4) HUD Clips,² and (5) HUD.³ Citations are included with each document to help you secure copies.

The USDA website for the Rural Housing Service is:
http//www.rurdev.usda.gov/rhs/index.html.

HUD Federal Register Notices

Section 8 Certificate and Voucher Programs;
Conforming Rule
63 Fed. Reg. 23,825 (Apr. 30, 1998)
Summary: This final rule completes the process of combining and conforming the regulations for tenant-based rental assistance under the Section 8 certificate and voucher programs. It adds two subparts that had been reserved in the previous final rule establishing the combined part governing tenant-based assistance. This rule also amends requirements of project-based assistance under the certificate program. In addition, the rule continues HUD's streamlining efforts by revising various sections in the previously created part to cover the combined Section 8 certificate and voucher programs and by consolidating definitions now found in individual program regulations.
These conforming regulations are described in greater detail elsewhere in this issue.
Effective date: Most of the rule's provisions are effective June 1, 1998.

Empowerment Zones: Rule for Second-Round
Designations; Interim Rule
63 Fed. Reg. 19,151 (Apr. 16, 1998)
Summary: This interim rule adds new regulations governing the designation of 15 urban areas as Empowerment Zones, in which area business receive special tax benefits, and to implement changes made by sections 952-954 of the Taxpayer Relief Act of 1997 which authorized designation of a second round of Empowerment Zones. In addition, HUD is authorized to designate two additional Empowerment Zones under the criteria used in the first round for which a separate final rule has been issued.

The principal statutory change for the second round is the replacement of the existing criteria concerning the poverty rate. The 1997 Act altered eligibility criteria by increasing the size of the zones and eliminating the requirement that at least half of the nominated areas consist of census tracts with poverty rates of at least 35 percent. As under existing law, at least 90 percent of the applicant area's census tract must have a poverty rate of at least 25 percent, and at least a 20-percent poverty rate for the remaining 10 percent. Census tracts with populations under 2,000 get special consideration for satisfying the 25-percent rate.

Effective date: The interim rule is effective May 18, 1998.
Comment deadline: June 15, 1998.

Notice Inviting Applications: Second-Round
Designation of 15 Urban Empowerment Zones
63 Fed. Reg. 19,162 (Apr. 16, 1998)
Summary: This Notice invites applications for designation of nominated areas as Empowerment Zones and describes the designation process. Between $130 million and $230 million in tax-exempt bond authority to create economic opportunity for area residents and businesses will be made available.

Applications are available from HUD's Community Connections Information Clearinghouse at (800) 998-9999.

Application deadline: October 9, 1998.

HUD Notices

Public Housing Development Cost Limits
PIH 98-23 (HA) (Apr. 13, 1998)
Summary: This Notice explains the procedures for establishing public housing development cost limits as required by Section 6(b) of the United States Housing Act. The notice, which is inapplicable to Indian housing, includes an updated schedule of unit total development cost (TDC) limits, effective immediately for developments without executed construction/rehabilitation contracts.

HUD will issue a Notice soon with additional information on TDC and cost control policies.

USDA Regulations

Designation of Rural Empowerment Zones and Enterprise Communities; Interim Rule
Directive No. 98-10156
63 Fed. Reg. 19,107 (Apr. 16, 1998)
Summary: This interim rule provides policies and procedures by which the Secretary of Agriculture will designate a maximum of five rural Empowerment Zones (Round II) as authorized by the Taxpayer Relief Act of 1997. It also amends regulations for the existing three rural Empowerment Zones and 30 rural Enterprise Communities designated in Round I.
Effective date: The interim rule is effective May 18, 1998.
Comments due: June 15, 1998. For more information, call the USDA's Office of Community Development, (800) 851-3403, or e-mail round2.rural@www.ezec.gov.

USDA Notices

Notice Inviting Applications for Designation  of Rural Empowerment Zones
Directive No. 98-10157
63 Fed. Reg. 19,143 (Apr. 16, 1998)
Summary: This Notice invites applications from state and local governments, Indian tribal governments, regional planning agencies, nonprofit organizations, community-based organizations or other locally based organizations on behalf of rural areas nominated for designation as Empowerment Zones.
Application deadline: October 9, 1998.

¹  At http://www.access.gpo.gov/su_docs.
²  At http://www.hudclips.org/cgi/index.cgi.
³  To order Notices and Handbooks from HUD, call (800) 767-7468 or fax (202) 708-2313.